BRUSSELS

Belgium's federal government reached a €9.2 billion ($10 billion) budget agreement early Monday after more than 20 hours of negotiations, ending weeks of political uncertainty, according to the Belga news agency.

Prime Minister Bart De Wever said the talks were "a tough exercise" but stressed that the coalition succeeded in avoiding delays on difficult decisions.

The package includes targeted tax increases, earlier-than-planned income tax cuts and an adjustment to the wage indexation system.

The deal avoids a general VAT hike but raises VAT to 12% for hotel stays, campsites, sports activities, takeaway meals and soft drinks.

Gas will become more expensive due to higher excise duties, while excise duties on electricity will fall.

A €2 tax on small parcels from outside the EU will be introduced, and the securities account tax will be doubled. The bank tax will also rise.

Health care spending growth will be limited to 2.5%, while up to €3.7 billion in additional investment is foreseen.

The government also aims to return 100,000 long-term sick individuals to work.

Reactions across the political spectrum were sharply divided. Left-wing parties criticized the deal as socially unfair, while governing parties defended it as necessary to stabilize public finances.

De Wever is set to present the agreement to the parliament on Wednesday.